A .system of accounting
 
 The company follows the mercantile system of accounting and recognised
 Income and expenditure on the accrual basis .
 
 B. Investments 
 
 I) long term investments of the company are stated at
 Their cost of acquisition .however long term investments acquired up to
 31st march 1996 were revalue at the estimated realisable value as on
 31st march 1996 and are started at the same value on the balance sheet
 Date . The difference on account of such revaluation had been taken to
 Capital reserve account necessary adjustment are made in the capital
 Reserve account when ever any of the revalue investments are sold
 Ii)provision for diminutation in the value of long term investment is
 Made only if such a decline is other than temporary in the opinion of
 The management
 
 C. Sales & purchases sales & purchases are recognised net of returns 
 
 D. Taxation 
 
 I) current tax has been determined and provided as the amount of tax
 Payable in respect of taxable income for the year ii)deferred tax has
 Been recognised subject to the consideration of prudence on timing
 Differences being the difference between taxable income and accounting
 Income that originate in one period and are capable of reversal in one
 Or more subsequent periods